EU–China solar dispute reveals fl aws in global trade system

Journal article

Last year’s EU–China trade dispute over solar products revealed the lack of trust between the two sides in combating the global threat of climate change.

Trade issues were manipulated for political reasons, and many solar companies in China and Europe have suffered as a result, highlighting the fact that the intrinsic flaws of the existing international trade infrastructure need to be fixed as global economic, social, and environmental integration accelerates.

The trade saga was heavily politicized. Its dramatic negotiation process was hijacked by trade protectionists. And the conflicting policy directions sent the wrong message to consumers.

Although an ‘amicable’ (as claimed by the EU trade commissioner, Mr Karel de Gucht) solution – agreement on a price floor for the Chinese imports into the EU – was reached in the end, the trade row casts a heavy shadow over political and economic relations between the EU and China.

It will take a long time to rebuild investor confidence in the future of the global solar industry; most importantly, it will make it an even more difficult task for the EU and China to establish mutual trust and reach a consensus in tackling the global issues of energy security and climate change.

Authors: Zhao, R

• Publication status: Published
• Peer review status: Peer reviewed
• Publisher: Oxford Institute for Energy Studies
• Journal: Oxford Energy Forum
• Volume: 95
• Pages: 28-30
• Publication date: 2014-02-01
• Edition: Publisher's version
• ISSN: 0959-7727
• Language: English
• Keywords: OIES